5 things to know about mergers in 2013

With the prospect of higher taxes and sluggish economic conditions even if the U.S. resolves the fiscal cliff, forecasters at Ernst & Young expect corporate mergers and acquisitions to chug along at roughly the same, less-than-stellar pace in 2013 as in 2012.

“The fiscal cliff and European stability are two very big overhangs and so we’re cautious on M&A as a result,” said Richard Jeanneret, Americas vice-chair, transaction advisory services of Ernst & Young, in an interview.

Jeanneret cited the research firm’s study concluding merger and acquisition activity will remain near 10-year lows with the following trends — not all of them negative:

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